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China: Stocks close higher as central bank tries to stabilise yuan

China's benchmark index dropped below the 3,000 level, resuming this year's selloff as better-than- expected trade data and government efforts to stabiliSe the yuan failed to ease investor concerns about the economy.

PHOTO: EPA

[SHANGHAI] China stocks closed higher in choppy trade on Tuesday as the central bank tried to stabilise the yuan after allowing it to sharply depreciate in the first week of the year, sowing confusion in global financial markets over its policy direction.

Sentiment was also supported by reports that China's cabinet, the State Council, may take a more active more in financial regulation following a series of perceived misteps under the current regulatory regime.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.7 per cent to 3,215.71 points, while the Shanghai Composite Index gained 0.2 per cent to 3,022.86 points.

Among the most active stocks in Shanghai were CN Shipbuilding, up 3.0 per cent to 8.24 yuan; Shanxi Coal, down 3.5 per cent to 4.94 yuan and Nanjing Steel, down 6.3 per cent to 2.97 yuan.